Automation and inequality there exist a relationship?

Abstract

Using a sample of 33 European countries in the period 2000-2016, this paper analyses the relationship between the economic inequality, measured by the Gini index, and the automation level, evaluated according to the number of robots per 10,000 workers. Using a panel data approach, the conclusion is that higher levels of automation lead to a reduction in inequality in the medium term. The explanation for this phenomenon can be found in the fact that automation increases wealth in the country, which can be used by governments to reduce inequality through redistributive policies.